Bajaj Auto banking big on outsourcing
While the second-largest two-wheeler major in the Indian market, Bajaj Auto has been going through many ups and downs in the past, the company has always been able to maintain its bottom-lines. However, over the last five years, the company has focused on the outsourcing capabilities to ensure a healthy bottom-line even in the period of plunging sales.
For the uninitiated, the company sold 2.5 million units in the fiscal 2009-10 and has projected an ambitious target of 4 million units for the fiscal 2010-11.
The process of outsourcing started at its facility in Chakan and it was aptly followed by the other facility that's aiming to make Japanese quality bikes at Indian manufacturing costs. Undeniably, the move has reduced Bajaj's suppliers from 800 at one point of time to 185 today. Moreover, just 15 vendors supply 75% of the components used at its Pantnagar unit.
In fact, at Chakan, a list of 50 vendors is able to meet 100% of its requirements. With the industry gaining momentum, it is expected that the company will keep on launching its high-quality products in the Indian market on a regular basis.